Fachin Reinstates DF Law Allowing Public Assets to Recapitalize BRB

Overview

• The STF president’s ruling, issued Friday, overturns a DF court injunction and returns Law 7,845/2026 to full effect.
• The law lets the government use nine listed properties as collateral or sell them to raise up to R$6.6 billion for the state-controlled bank.
• Fachin said halting the law would harm public administration and the local economy because BRB handles payroll, social programs and large judicial and public deposits.
• The crisis traces to BRB’s losses from credit portfolios bought from Banco Master, reported at about R$12 billion, and shareholders approved a capital increase of up to R$8.8 billion on Wednesday.
• Separately, the STF’s Second Panel formed a majority to keep former BRB president Paulo Henrique Costa in preventive detention in the Compliance Zero investigation.